Income Statement

Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2020 information related toWindsorCompany ($000 omitted).

Administrative expense

Officers' salaries $5,330

Depreciation of office furniture and equipment 4,390

Cost of goods sold 61,000

Rent revenue 17,660

Selling expense

Delivery expense 3,120

Sales commissions 8,410

Depreciation of sales equipment 6,910

Sales revenue 96,930

Income tax 9,500

Interest expense 2,290

Common shares outstanding for 2020 total34,100(000 omitted).

(a)